Financial groups to support merchants in Seocheon affected by fire

Police officers and firefighters examine the site of a fire at a traditional market in Seocheon, South Chungcheong Province, Wednesday. The market was hit by the blaze two days earlier, which burned down 227 of the total 292 shops. Yonhap

The country’s major financial groups are stepping up to help merchants at a traditional market in Seocheon, South Chungcheong Province, affected by fire.

On top of sending emergency relief supplies, they have launched financial support programs including offering special loans and preferential interest rates as well as extending loan maturity and delaying payment deadlines for insurance premiums and credit cards.

According to KB Financial Group, it plans to provide the affected areas with emergency relief kits including blankets, hygiene items and medicine as well as mobile kitchens and laundry vehicles.

In addition, KB Kookmin Bank will offer special loans as emergency living stabilization funds, as well as business loans and also fund the repairs to the damaged facilities. It will also extend maturity for household and corporate loans while offering preferential interest rates.

KB Insurance, meanwhile, will defer premium payments without late fees for long-term insurance customers, and KB Kookmin Card will defer credit card payment deadlines for up to six months.

"We hope that small business owners affected by this major fire can quickly regain their livelihoods. KB Financial Group will make every effort to provide support until the recovery is complete,” a spokesperson for KB Financial Group said.

Hana Bank also plans to support affected merchants with emergency business stabilization loans of up to 500 million won.

Maturities for existing loans will be extended for up to one year without repayment of principal, and installment repayments can be deferred for up to six months. Additionally, they will reduce loan interest rates by up to 1.3 percentage points.

"We will spare no effort in providing diverse and practical support to market merchants who have suffered unexpected losses from the fire so that they can return to stable daily life as soon as possible,” Hana Financial Group Chairman Ham Young-joo said.

Woori Bank is offering each affected merchant up to 500 million won in loans at preferential interest rates. For those who already have loans at Woori Bank, maturities will be extended for up to one year while installment repayment due dates will be deferred.

“All subsidiaries of Woori Financial Group will continue working together to explore additional support measures and contribute to ongoing recovery efforts,” said Yim Jong-yong, the group chairman.

Shinhan Bank will offer to cut interest rates by up to 1.5 percentage points while offering the merchants up to 500 million won in loans, and Shinhan Card customers can defer credit card payments for six months. Shinhan Life, the insurance arm of the group, will provide insurance coverage for six months regardless of whether insurance premiums were paid or not.

“We offer sincere consolation to those affected by the fire. We will offer what we can so that they can overcome the property damage and return to their normal lives,” Shinhan Financial Group Chairman Jin Ok-dong said.